FRANKFURT—More than $2 billion in commercial real estate loanswill be transferred from Deutsche Bank AG'sportfolio into the hands of private equity firmTPG. That's according to a report fromReuters, which obtained the information fromunnamed sources familiar with the deal.

Driven by the strong US commercial real estate market, theGerman banking powerhouse is said to be close to selling most ofits portfolio, and it's expected to realize a profit on the sale.Financial institutions globally have also begun downsizing theirbalance sheet holdings ahead of the implementation of the VolckerRule, a provision of the 2010 Dodd-Frank Act that restricts banks'ability to trade with their own money.

The package contains mortgages for retail malls and officebuildings that DB both originated and purchased. According to thesources, the deal could close this month, though as of now itremains subject to regulatory approval. DB would continue to hold aminority stake in the assets.